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Technology Stocks : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?

To: John Stopforth who wrote (28806)	2/17/2001 8:48:43 PM
From: niceguy767	Respond to of 275872

John: I agree wholeheartedly with your assertion that P/E ratios are an increasingly important determinant in the investment decision in the currently negative environment and that a fairly significant transition from high multiple to low multiple equities is in its formative stage...The only departure to this general rule in the current environment that makes sense to me might include investment in possible takeover candidates...On a P/E basis, AMD is my no. 1 pick and as a potential takeover target, EEE is my only current investment... Concerning your point about "woes" of AMD competitors taking down AMD, such knee jerk responses seem to be diminishing in duration as evidenced by AMD's recent relative strength compared to general indices and compared to competitors' prices...It is just too difficult to ignore AMD's superior product line and superior earnings performance any longer...A year ago we heard from INTC pundits that AMD was a flash in the pan and would revert to negative earnings after one or two quarters of profitability...Now, one year later, not only does "negative earnings" seem a thing rooted only in the past, but " increasingly positive earnings" are projected by most sane analysts into the foreseeable future...A test of the "negative competitor effect" (even though NT is not a direct competitor) will be the length of time it takes for AMD to recover to $26.50...A swift recovery will support the hypothesis that AMD is increasingly less vulnerable (i.e knee jerk response only) to the woes of others in the tech sector...

To: John Stopforth who wrote (28806)	2/17/2001 8:49:26 PM
From: niceguy767	Respond to of 275872

John: I agree wholeheartedly with your assertion that P/E ratios are an increasingly important determinant in the investment decision in the currently negative environment and that a fairly significant transition from high multiple to low multiple equities is in its formative stage...The only departure to this general rule in the current environment that makes sense to me might include investment in possible takeover candidates...On a P/E basis, AMD is my no. 1 pick and as a potential takeover target, EEE is my only current investment... Concerning your point about "woes" of AMD competitors taking down AMD, such knee jerk responses seem to be diminishing in duration as evidenced by AMD's recent relative strength compared to general indices and compared to competitors' prices...It is just too difficult to ignore AMD's superior product line and superior earnings performance any longer...A year ago we heard from INTC pundits that AMD was a flash in the pan and would revert to negative earnings after one or two quarters of profitability...Now, one year later, not only does "negative earnings" seem a thing rooted only in the past, but " increasingly positive earnings" are projected by most sane analysts into the foreseeable future...A test of the "negative competitor effect" (even though NT is not a direct competitor) will be the length of time it takes for AMD to recover to $26.50...A swift recovery will support the hypothesis that AMD is increasingly less vulnerable (i.e knee jerk response only) to the woes of others in the tech sector...